laptop, stethoscope, and paper

In recent years investors have been blessed with a frequently bullish market and a tentative approach on the part of the Treasury Department. These trends have inspired tepid optimism on the part of investors straining to identify which industries are thriving in an artificially relenting environment, and which are here to stay. Despite political uncertainty, the industry continues to expand and demand is only going to increase. If you are cultivating an investment portfolio that is going to succeed in the next three or four decades, healthcare stocks are an important tool for achieving your financial goals.

Product FAQ

Any investment strategy warrants extensive scrutiny. We cannot resolve every curiosity our readers might havehave regarding any of the industries or investment options we cover, yet we have, and will continue to, do our best to resolve our readers' most common inquiries succinctly beforehand as we have done below.

Comparison Table

Title

Trading Price

Celgene Corporation (CELG)

trading at roughly $90

Stryker Corporation (SYK)

trading at roughly $175 per share

Tandem Diabetes Care (TNDM)

trading at about $35 per share

United HealthGroup Incorporated (UNH)

stock is about $270

Natera (NTRA)

share price around $5

Johnson & Johnson (JNJ)

cost about $130

Tenet Healthcare Corporation (THC)

about $28 per share

Genesis Healthcare (GEN)

stock is about $1.30

Vertex Pharmaceuticals (VRTX)

currently about $190

Ligand Pharmaceuticals (LGND)

trading at roughly $255

1. What Are Healthcare Stocks?

2. What Does the Future Look like for Healthcare Stocks?

3. How Do Healthcare Stocks Help My Investment Portfolio?

4. Where Can You Purchase Healthcare Stocks?

How We Reviewed

To provide our readers with the most accurate possible review, we took stock of companies in all sectors of the healthcare industry. We based our assessments on information available through stock exchanges, independent analytical organizations, and authoritative media organizations that cover finance.

Overall Price Range of the Healthcare Stocks Reviewed in This Article

The share prices of the healthcare stocks we reviewed for this article range from just over a dollar per share to more than $250 per share. While share price can be a significant factor in determining the viability of an investment strategy, Earnings Per Share (EPS) is a far more informative figure as it reflects the amount an investor must invest to make a dollar. Share price is not necessarily indicative of value.

What We Reviewed

  • Celgene Corporation (CELG)
  • Stryker Corporation (SYK)
  • Tandem Diabetes Care (TNDM)
  • United HealthGroup Incorporated (UNH)
  • Natera (NTRA)
  • Johnson & Johnson (JNJ)
  • Tenet Healthcare Corporation (THC)
  • Genesis Healthcare (GEN)
  • Vertex Pharmaceuticals (VRTX)
  • Ligand Pharmaceuticals (LGND)

Celgene Corporation (CELG)

Celgene Corporation (CELG)

Photo credit by: seekinalpha.com

Features 

Celgene Corporation primarily produces drugs to treat cancer and inflammatory diseases. Spending on cancer treatments is expected to reach $150 billion by 2020 and Celgene has the largest market share and best positioning to take advantage of the growth in spending in their strongest sector. Celgene's stock price dropped dramatically last October after a phase 3 trial failure of a treatment for Crohn's disease into which the company had poured tens of millions of dollars. While this is unfortunate for the company, the circumstance allow investors to acquire shares of the company at a reasonable price.

Pros

  • Serves a growing segment of a growing market       
  • Currently cheap to acquire

Cons

  • Recent negative trial results

Price 

Shares of Celgene Corporation are currently trading at roughly $90.

Future of the Company

Despite the recent market pullback, Celgene seems poised for a resurgence. Their failed clinical trails prompted the company to refocus on expanding their product pipeline through acquisitions and their drugs are selling better than ever in a growing segment of the lucrative healthcare market.

Stryker Corporation (SYK)

Stryker Corporation (SYK)

Photo credit by: markets.co

Features 

Stryker is unique among healthcare stocks in that the company deals exclusively in medical supplies. The company has enjoyed a decade of steady revenue growth. The company's stock has been steadily increasing in value, and the bullish indications show no signs of an impending decline.

Pros

  • Offers a bevy of bullish indicators   
  • Strong reputation for revenue growth

Cons

  • Relatively expensive to acquire

Price 

Stryker Corporation stock is currently trading at roughly $175 per share.

Future of the Company

The company's share of the medical supplies market shows no signs of shrinking in the near future. The company recently acquired a Swiss medical supplies company, signaling a possible move to increase their market share in Europe and elsewhere. 

Tandem Diabetes Care (TNDM)

Tandem Diabetes Care (TNDM)

Photo credit by: smartanalyst.com

Features 

Tandem Diabetes Care produces a variety of products related to treatment for diabetes. The company's flagship product is an insulin pump that automatically monitors the blood sugar levels of diabetic patients. Like Skylar Corporation, Tandem avoids the myriad political complexities that prove burdensome for direct care providers and drug manufacturers. With nearly 30 million diabetes patients in the country, and an additional 1.5 million new cases each year, this company's market isn't going anywhere.

Pros

  • Strong and stable market 
  • Value has skyrocketed and stabilized in recent months

Cons

  • Currently comes with a low earnings per share 
  • Recent success is consistent with an impending pullback

Price 

Tandem Diabetes stock is currently trading at about $35 per share. 

Future of the Company

The company recently patented a new insulin pump with a digital readout. This product is likely the new industry standard and may give Tandem a distinct advantage over its competitors in the coming months and years. 

United HealthGroup Incorporated (UNH)

United HealthGroup Incorporated (UNH)

Photo credit by: livetradingnews.com

Features 

United HealthGroup is one of the most ubiquitous health insurance providers in the country. The company sells insurance plans to individuals and employers including medicaid plans, medicare supplements, and plans specifically for children. The company also markets software and information technology related to the healthcare industry.

Pros

  • Offers a diverse set of products    
  • Sustained growth over the last year

Cons

  • Expensive share price
  • Vulnerable to political currents

Price 

The current price per share of United HealthGroup stock is about $270.

Future of the Company

The company posted an all-time stock price high earlier this year and the company has been able to more or less maintain their standing. Their projected revenue growth for 2018 has investors clamoring for shares. Investor confidence is reflected in sustained value.

Natera (NTRA)

Natera (NTRA)

Features 

Natera is a genetic testing and diagnostics firm that specializes in DNA analysis. Since the company's IPO in 2015, Natera's stock performance has been disappointing. The company staged a recovery beginning early this year as investors heard rumors about reassuring cash flows and turned their eyes to the products in Natera's pipeline.

Pros

  • Demonstrating the ability to rally            
  • Strong position within their market

Cons

  • Lacks a strong track record

Price 

Natera has a current share price around $5.

Future of the Company

Natera has recently devised an innovative test that detects early rejection in liver transplant patients. In trials, the new test had a 92% sensitivity, which is far more accurate than any similar product on the market. Conveniently for Natera, Medicare recently agreed to pay $2,900 every time one of the nearly 200,000 people with a transplanted kidney is tested.

Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ)

Photo credit by: benzing.com

Features 

Johnson & Johnson is an iconic American brand with a broad, diversified business model. More recently the company has been moving aggressively to expand its share of the pharmaceutical market. The company recently acquired the $30 billion company Actelion, a major European drug manufacturer, signaling a willingness to build pharmaceutical revenue around the world. If that isn't enough to pique your interest, the company pays a 2.6% dividend annually. Johnson & Johnson is the blue-chip option among healthcare stocks.

Pros

  • Strong dividend offerings     
  • Large company with a major and stable market share

Cons

  • Expensive share price

Price 

Shares in the Johnson & Johnson company cost about $130.

Future of the Company

In addition to the company's massive market share, dividends, and recent acquisitions, they currently have 39 new treatments in the third stage of the FDA approval process.

Tenet Healthcare Corporation (THC)

Tenet Healthcare Corporation (THC)

Photo credit by: seekingalpha.com

Features 

Tenet Healthcare is a private, for-profit hospital company that has struggled to maintain market traction since the implementation of the Affordable Care Act. Despite strong annual revenues, the company has faltered due to interest payments on a heavy debt burden. After a slew of positive earnings reports, Tenet's stock price surged 128% as investors finally seemed confident the company would pull through.

Pros

  • Share price is currently cheap  
  • Strong potential for growth

Cons

  • The company has a checkered history

Price 

Tenet Healthcare stocks are currently priced at about $28 per share.

Future of the Company

Tenet is currently attracting more patients and profiting more per patient than it has since the implementation of the Affordable Care Act based on some political uncertainty. The company's future will be largely determined by the political future of the country and the healthcare industry in Texas, Tenet's home state.

Genesis Healthcare (GEN)

Genesis Healthcare (GEN)

Photo credit by: wallstreetintellects.com

Features 

Genesis healthcare is well positioned in that the company has a large market share in a growing market. The company provides short-term rehabilitation, skilled nursing, and long-term care services aimed primarily at elderly patients. The company operates more than 500 residences through 34 states and works in coordination with more than 1,700 healthcare providers in 45 different states.

Pros

  • Low share price   
  • Works in a growth market

Cons

  • Poor earnings history

Price 

The current share price or Genesis Healthcare stock is about $1.30.

Future of the Company

As the American population ages, long-term care and skilled nursing facilities will be increasingly in demand, and Genesis is well positioned to expand.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals (VRTX)

Photo credit by: fdaheadlines.com

Features 

Vertex is a Boston-based biotechnology firm that specializes in treatments for viral infections, inflammatory and autoimmune disorders, and various types of cancer. The company has an annual revenue north of $2 billion and yet is still considered undervalued among healthcare stocks by investors. Sluggish valuation is in part due to the companies debt-load, which is large but nor unreasonable for a company with that kind of revenue to get away with it. Vertex ranks among the likes of Johnson & Johnson as a blue chip option amongst healthcare stocks.

Pros

  • Offers investors high market liquidity   
  • Shares are readily available

Cons

  • High share price
  • The company holds a lot of debt

Price 

The price per share for Vertex Pharmaceuticals is currently about $.

Future of the Company

The company has an impressive and seemingly unshakable market share with strong potential for earnings and revenue growth in the coming year. The worst-case scenario is stable, qualified growth.

Ligand Pharmaceuticals (LGND)

Ligand Pharmaceuticals (LGND)

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Features 

Ligand Pharmaceuticals occupies an interesting position in relation to other healthcare stocks. The biopharmaceutical company serves as a complimentary labor force and body of knowledge for pharmaceutical companies that develop and patent prescription medications. Because the company does not actually produce and sell drugs, the company is, to an extent, insulated from the aforementioned complexities of government's role in determining drug prices. This business model means the company has the potential to generate royalties on popular drugs without accepting the onus of the risk involved.

Pros

  • Earnings Per Share (EPS) is growing rapidly       
  • Ligand's market is growing

Cons

  • Share price is relatively high

Price 

Shares of Ligand Pharmaceuticals are currently trading at roughly $$.

Future of the Company

As of right now, there is no reason to believe the market for firms like Ligand will decrease nor is it likely that Ligand's share of that market will lose ground to any major competitors.

The Verdict

No investment portfolio could be considered sufficiently diversified if it did not include a strong stake in the healthcare industry. Market growth will be large and consistent based on American demographics and the industry is prepared for the necessary expansion. Whether you are looking for a blue chip opportunity or an unknown company on the rise, you would be remiss not to experiment in the healthcare industry.

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